The AB=CD pattern is easy to identify on charts and consists of 2 equivalent price legs. It has specific Fibonacci measurements of each point within its structure, eliminating room for flexible interpretation. The C point must retrace to either a 0.618 or 0.786 and the BC projection is either 1.27 or 1.618. When the BC projection and the AB=CD completion converge closely and define a small area, the chance of a reversal increases.
The first target would be the 382 retracement of AD and the second target the 618 retracement of AD. A common stop level is behind a structure level beyond the D point. Conservative traders may look for additional confirmation before entering a trade, for instance an aligning RSI value or a specific candlestick pointing at a reversal. TradingView has a smart ABCD Pattern drawing tool that allows users to visually identify this pattern on a chart. There are several variations, based on CD being an extension of AB such as the 1.27 AB=CD or the 1.618 AB=CD pattern.
It is fluctuating in a descending channel. By completing the pattern AB = CD inv the PRZ and TRZ range for the channel floor target is specified. Then look for Trigger to reach the roof of the canal.
I'm a huge fan of ABCD pattern. And this is my setup for USDJPY.
Goodluck!
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Trading Foreign Exchange Currency Pairs and Contracts For Difference on margin carries a high level of risk to your capital. These derivatives may not be suitable for all investors. The information contained here is general in nature, provided without reference to your past, present or...
I'm going short with this pair.
Goodluck!
Trading Foreign Exchange Currency Pairs and Contracts For Difference on margin carries a high level of risk to your capital. These derivatives may not be suitable for all investors. The information contained here is general in nature, provided without reference to your past, present or future financial situation. This...
*EDIT*: Please ignore the big chart. The analysis is below.
Hello traders,
We had a 0.786 retracement of our recent high. A move down to the reciprocal at 1.27 would complete this ABC retracement. The Potential Reversal Zone (PRZ) is 8193.66-7522.96. *EDIT*: Yes, that should read 1.27BC, not...
the pair near to complete AB=CD structure
with 61.8 Replacement of upward impulse
in addition to resistance line parallel .
This is not an investment recommendation or any call to buy or sell
It is just an analysis based on a study of the history of price action
Behavior , that may not be a necessarily reason for the success of
the structure or...
This is not an investment recommendation or any call to buy or sell
It is just an analysis based on a study of the history of price action
Behavior , that may not necessarily be a reason for the success of
the structure or repetition. So please make your decision based on your vision .
To protect capital and manage your deals and trading successfully
the...
Gold Completed AB=CD and hit FIB 1.272 EXT
Long pin bar Formed therefore we can sell gold
SL Above the Pin
Aim for 0.382 /0.618 Retracement
1315 and 1256
After putting in a retracement to retest previous structure lows the S&P is now trading at the right should of what may turn out to be a head and shoulders bottom pattern.
The head and shoulders is a classic reversal pattern & IF completed I would predict that we're likely to retest the previous structure highs which line up at a one - to - one measured move & a...
A bullish bat setup with AB=CD pattern and on top of that an RSI Divergence on the smaller timeframe, 4-hourly chart(left) gave strong setup for a counter-trend buying opportunity.
I've already engaged the trade, it's your analysis to decide if you should engage in this counter-trend setup.
GBP/USD is currently forming a bullish bat pattern on the 4h chart, providing a trading opportunity with a 1:2.24 risk to reward.
The measurements for a valid bat pattern are detailed below.
XA Retracement: 0.382 - 0.50
AB Retracement: 0.382 - 0.886
BC Projection: 1.618 - 2.618
XA Retracement: 0.886
All 3 measurements form within a close proximity in the...
As we expected, the triangle has just broken at 61.8% retracement of the initial broke. Now, we are waiting for a bit of pullback and can open a long (grey area near the triangle). XAU also shows the same pattern.
It is moving in a descending channel and is completing the basic pattern AB = CD. The range is PRZ (1.57604-1.57983) and TRZ range (August 12 - August 13).
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